The Strait of Hormuz is only 39km (24 miles) wide at its narrowest point. And yet, 20 million barrels of oil would typically flow through it every day – about 25 percent of the world’s maritime oil trade.That was until the United States and Israel launched strikes on Iran in late February and Tehran responded by closing the strait. Brent crude oil prices have since soared to nearly $120 a barrel, Gulf producers have been forced to cut production and the pipeline routes that bypass the Strait of Hormuz can move only 5 million to 6 million barrels a day.Recommended Stories list of 3 itemsend of listThe world has a chokepoint problem it cannot solve. But what has not been noticed is that a second chokepoint is forming on Europe’s southern doorstep through a different mechanism and with a different cast of actors moving towards the same result.Libya’s location should make it strategically valuable to the global oil trade. Its crude oil loads at terminals on its northeastern coast and reaches Italian refineries in 48 hours on routes that – unlike oil coming from the Gulf at times of war – require no military escorts, no war-risk premiums and no detour around Southern Africa.Libya also produces the light, sweet grades of oil that European refiners now need. In late March, Egypt formalised what markets were already signalling, announcing it was securing roughly 1 million barrels a month from Libya to offset Hormuz disruptions.Europe has seen opportunities in its southern energy neighbourhoo …
